Explanation
Section 199 of IT Act 1961 (consolidated in IT Act 2025) governs who gets credit for TDS and in which year. Rule 37BA (under §199) specifies: credit goes to the person in whose hands the income is assessable; if income is shown in a different year than TDS deduction (e.g., accrual-based contractor), the credit follows the income year. TDS credit cannot be split across multiple years for the same income item. The credit is validated through Form 26AS/AIS — if TDS is deducted but not deposited by the payer, the credit shows as 'unmatched' and the deductee may need to follow up. Verify on the income-tax portal before filing.